Companies with order books exceeding their market capitalization present an intriguing investment scenario. This situation occurs when a firm’s future contracted revenue surpasses its current stock market valuation. It often indicates potential undervaluation or market skepticism about the company’s ability to execute orders profitably.
This phenomenon is particularly common in sectors with long project cycles, such as infrastructure, defense, and heavy engineering. Investors analyzing these companies must consider factors like execution capability, profit margins, and industry dynamics to assess whether this discrepancy represents a genuine investment opportunity.
Companies with Order book greater than Market capitalization
Some of the companies having order book greater than their market cap are listed below:
- NCC
- J Kumar Infra Projects
- Gr Infra Projects
- HG Infra Engineering
- Ircon
- Patel Engineering
- Capacit’e Infraprojects Ltd
- Skipper Limited
Company Overview
NCC Limited
NCC, a leading infrastructure and construction company in India, has established itself as a key player in the nation’s development landscape. With a diverse portfolio spanning sectors such as buildings, roads, water projects, and power, NCC has been instrumental in shaping India’s infrastructure for over three decades. NCC Limited continues to contribute significantly to India’s growth story, adapting to new technologies and sustainable practices in construction.
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Order Book: NCC Limited’s order book has shown impressive growth, reaching Rs. 57,536 crore in FY24, a 15% year-on-year increase again. While their market cap stands at ₹ 21,328 Cr..The company secured new orders worth Rs. 27,283 crore in FY24, representing a 5% growth from the previous year.
Notable recent orders include three smart meter projects valued at Rs. 8,080 crore, marking NCC’s entry into this new segment. The company also won a significant contract for constructing a twin tunnel from Goregaon to Mulund in Mumbai, worth Rs. 6,335 crore (excluding GST), with NCC’s share being Rs. 3,231 crore.
These new projects, along with ongoing executions, contribute to NCC’s diverse and robust order book across various infrastructure sectors. Besides this the company’s revenue and net profit have also soared from ₹15,553 Cr and ₹646Cr. in 2023 to ₹20,845 Cr. and ₹740 Cr. in 2024 respectively.
J Kumar Infra Projects
J. Kumar Infra projects is a leading infrastructure development company in India, specializing in civil engineering and EPC (Engineering, Procurement, and Construction) projects. With a rich legacy spanning over four decades, the company has established itself as a key player in urban infrastructure development. J. Kumar Infra projects focuses on complex projects across various segments, including metro systems, flyovers, bridges, roads, water projects, and civil construction.
Order Book: As of March 31, 2024, J. Kumar Infraprojects reported a robust order book of ₹21,011 crores while their market cap is ₹ 6,780 Cr. The company secured new orders worth ₹11,810 crores during FY24, marking its highest-ever annual order inflow. Notable recent wins include a ₹3,088 crore contract for the Goregaon Mulund Link Road (GMLR) project in Mumbai, featuring twin tunnels of 4.7 km each, and a ₹3,570 crore project for the Chennai Elevated Corridor.
The order book is well-diversified across metro projects, elevated corridors, flyovers, roads, and other civil infrastructure works, positioning the company for sustained growth in the coming years.
G R Infraprojects
G R Infraprojects is a leading integrated EPC (Engineering, Procurement, and Construction) company in India, specializing in road construction and infrastructure development. With a track record spanning over 28 years, the company has established itself as a key player in the infrastructure sector. G R Infraprojects focuses on projects across various segments, including highways, bridges, railways, metros, tunnels, and transmission lines.
Order Book: As of March 31, 2024, G R Infraprojects reported a robust order book of ₹2,11,267 million (₹21,126.7 crores), while the company’s market cap stood at 17,355Cr. The order book is well-diversified across various infrastructure segments, with 78% in road projects, 9% in hydro projects, and the remainder spread across MMLP, tunnels, transmission, railway & metro, and ropeways. This diverse portfolio, primarily from NHAI (78%), positions the company for sustained growth across 23 states in India.
H.G. Infra Engineering
H.G. Infra Engineering Is a leading infrastructure development company in India, specializing in EPC (Engineering, Procurement, and Construction) projects. With a legacy spanning over 22 years and a market cap of ₹ 11,288 Cr., the company has established itself as a key player in infrastructure development. H.G. Infra focuses on projects across various segments, including highways, railways, metros, and solar power.
Order Book: As of March 31, 2024, H.G. Infra Engineering reported a robust order book of ₹124,340 million (₹12,434 crores). The order book is well-diversified across different infrastructure segments: 68.2% in road projects, 21.3% in railway and metro projects, and 10.5% in solar power projects.
This diverse portfolio spans 12 Indian states, positioning the company for sustained growth across various infrastructure sectors. Notable recent wins include a ₹7,600 million contract for the Chennai -Tirupati Package-II project and a ₹13,070 million order for solar power projects in Rajasthan. The company’s strategic expansion into railway and solar sectors marks a significant evolution from its traditional focus on roads.
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Ircon
Ircon International is a leading Indian engineering and construction company specializing in transportation infrastructure. With over 45 years of experience and a market cap of ₹ 26,311 Cr. Ircon has established itself as a key player in railway and highway projects both domestically and internationally. The company’s expertise spans across various segments including railways, highways, bridges, tunnels, and metro systems.
Order Book: As of March 31, 2024, Ircon reported a strong order book of ₹27,208 crore. The order book is diversified across key infrastructure segments: 77.8% in railways, 21.9% in highways, and 0.3% in other sectors. Geographically, 90.8% of orders are domestic while 9.2% are international. The company has a balanced mix of competitively bid (49.3%) and nominated (50.7%) projects, demonstrating its ability to secure work through both channels. This robust and diverse order book positions Ircon for sustained growth across various infrastructure sectors.
Patel Engineering
Patel Engineering is a leading infrastructure development company in India, specializing in EPC (Engineering, Procurement, and Construction) projects. With a legacy spanning over 70 years, the company has established itself as a key player in infrastructure development. Patel Engineering focuses on projects across various segments, including hydropower, tunnels, irrigation, and urban development. The company has successfully completed numerous large-scale projects both in India and internationally, contributing significantly to the nation’s infrastructure growth.
Order Book: Patel Engineering, an Indian infrastructure company, has a robust order book reflecting its strong market position. As of recent reports, the company’s order book stands at approximately Rs 18,631 crore, although the company’s market cap stands at ₹ 5,826Cr. This includes a diverse range of projects across sectors like hydropower, tunnels, and roads.
The company has secured several new orders in recent months, boosting its order book. Notable among these is a Rs 1,275 crore contract for a hydroelectric project in Arunachal Pradesh. Additionally, Patel Engineering won a Rs 1,251 crore order for the Nekkallu Lift Irrigation project in Andhra Pradesh.
These new contracts underscore the company’s expertise in complex infrastructure projects and its continued growth in the sector. The healthy order book provides visibility for future revenue streams.
Capacit’e Infraprojects
Capacit’e Infraprojects is a leading Indian construction company specializing in high-rise buildings and large infrastructure projects. Founded in 2012, the firm has rapidly grown to become a trusted name in the industry, with a market cap of ₹ 2,548 Cr. The company is known for its innovative techniques, quality execution, and timely delivery. With a diverse portfolio spanning residential, commercial, and institutional sectors. Capacit’e Infraprojects continues to shape India’s urban landscape.
Order Book: Capacit’e Infraprojects boasts a robust order book, reflecting its strong market position. As of the latest available data, the company’s order book stands at approximately ₹9,000 crore (90 billion rupees). This diverse portfolio includes several high-profile projects across India.
Recent notable projects include: a ₹4,000 crore home development for one of the top developers in Mumbai. A Bengaluru commercial development worth ₹1,500 crore. The company also completed a hospital project in Delhi NCR valued at ₹800 crore. It has also got orders worth 2,000 crore government infrastructure projects in total.
Skipper
Skipper, established in 1981, is a leading Indian manufacturer specializing in power transmission and distribution equipment, polymer products, and infrastructure solutions. Known for quality and innovation, Skipper produces transmission towers, poles, pipes, and railway electrification structures.
The company serves both domestic and international markets, contributing significantly to India’s infrastructure development. With a strong focus on technological advancement and sustainable practices, Skipper continues to expand its footprint in the global power and infrastructure sectors.
Order Book: Skipper Limited maintains a robust order book of approximately ₹6,215 crore, while their market cap stands at ₹ 4,235 Cr. showcasing its strong market position in power transmission and infrastructure sectors. This diverse portfolio includes transmission tower projects for state electricity boards, railway electrification contracts, and polymer pipe orders for water and irrigation projects across India and international markets.
Key recent wins include a ₹737 crore order for transmission towers from Power Grid Corporation of India, a ₹200 crore railway electrification project in Eastern India, and a ₹150 crore export order for towers from a South American utility. The company also secured a significant ₹300 crore polymer pipe contract for a major irrigation project in Central India, further solidifying its position in the infrastructure sector.
Conclusion
As we can see from the above list, all of these companies are in the infrastructure or engineering sectors. The fundamental cause for this stems from the government’s substantial push to expand infrastructure in the country. Furthermore, the corporations’ aggressive infrastructure expansion ambitions have contributed to a larger order book value than their market capitalization.
Going ahead it will be interesting to see how these stocks perform in the coming years. Will the momentum continue or not, let us know in your comments?
Written By Dipangshu Kundu
By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks, also get updated with stock market news, and make well-informed investments.
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